1. The “14th five year plan” financial reform plans have been released one after another, and many provinces and cities have increased their financial management subsidiaries
Recently, the 14th five year development plan for financial standardization jointly issued by the people’s Bank of China, the State Administration of market supervision, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission pointed out that by 2025, the standard system suitable for the construction of modern financial system will be basically completed, and the status and role of standardization in supporting the high-quality development of the financial industry will be more prominent. So far, more than 20 provinces and cities across the country have successively issued the “14th five year plan” development goals of the financial industry. In the new situation, financial management subsidiary has become a new keyword.
“Initiating the establishment of wealth management companies, participating in private banks and attracting domestic and foreign banks, securities, insurance, funds and other financial institutions to settle down” has been widely mentioned in local financial development plans. For example, the financial industry development plan of Anhui Province in the 14th five year plan proposes to vigorously attract banks, insurance and other financial institutions to set up branches in Anhui, and strive for the headquarters of various financial institutions to set up financial management subsidiaries, asset management subsidiaries, professional investment subsidiaries, functional headquarters franchise institutions and innovative business forms in Anhui. The 14th five year plan for the development of financial industry in Zhejiang Province proposes to encourage qualified financial institutions to set up financial subsidiaries and financial asset investment companies in Zhejiang, and explore the establishment of a new number of non bank financial institutions. The 14th five year plan for the high-quality development of Shenzhen’s financial industry proposes to attract wealth management institutions such as bank financial management subsidiaries and their professional subsidiaries to Shenzhen. Support commercial banks to initiate the establishment of financial asset investment companies and wealth management companies in Shenzhen without the upper limit of foreign shareholding ratio. The special plan for the development of financial industry in the 14th five year plan of Fujian Province proposes to support qualified banks to set up professional wealth management departments such as private banks and financial management subsidiaries, so as to create a highland for wealth management institutions. The 14th five year plan for Chongqing’s financial reform and development proposes to promote qualified bank wealth management companies and financial asset investment companies to set up professional subsidiaries in Chongqing, focus on the development of institutions such as fund registration, valuation and accounting, fund evaluation and consulting information, and study the establishment of professional custody institutions. It is also mentioned in the financial industry development plan of the 14th five year plan of Hunan Province that overseas financial institutions are encouraged to participate in the establishment and investment of financial management subsidiaries of commercial banks in Hunan Province. Support qualified financial institutions to set up specialized subsidiaries such as financial leasing, financial management and direct investment. (Huaxia times)
2. The stock market is depressed, financial products are broken, and the layout of financial subsidiaries in the equity market meets the test
Since this year, due to the sluggish performance of China’s stock market, bank financial products have also been implicated, the net value of some products has fallen, and investors have suffered Book losses. By the end of January, the net value of 220 products of wealth management companies had fallen below the initial net value 1, accounting for 2.83%, most of which were products issued since the second half of 2021.
The income performance of equity assets was even worse, and the net value of many products decreased significantly.
Everbright financial’s “sunshine red health and safety theme selection” is an equity financial product with a risk level of level 4. According to the investment report for the fourth quarter of 2021, the fixed income asset allocation proportion of the product was 13.37% and the equity asset allocation proportion was 86.63% at the end of the fourth quarter. Most of the top ten assets are pharmaceutical stocks. However, due to the large decline of pharmaceutical stock prices since 2021, The net value of the financial product also fell sharply, with a decline of 9.87% in the fourth quarter. Since this year, the decline has expanded, and the latest net value on February 14 was only 0.7563.
The two equity products of “Beiying A-share new opportunities phase 1 and phase 2” of BlackRock Jianxin wealth management, a joint venture wealth management company, also fell significantly. The two products were issued in September and December 2021, mainly linked to the Shanghai and Shenzhen 300 index, and the latest net value fell to 0.9442 and 0.9421 respectively. If converted into annualized yield, they were – 13.4% and – 62.2% respectively. (Tencent)
3. The proportion of non-standard assets of financial subsidiaries of large state-owned banks decreased significantly, and the collective assets were less than 6.1%
By the end of 2021, the proportion of non-standard assets of six financial subsidiaries of large state-owned banks had been less than 6.1%. Among them, the financial management subsidiaries with non-standard assets accounting for more than 6% have been the highest in the financial management sub camp of big banks, and the other two are close to 6%, and the lowest non-standard proportion is less than 3%, which has led to the collective decline of the non-standard proportion of the group caliber of large state-owned banks (including the head office and financial management sub), and the addition of non-standard assets in the old assets managed by the head office has long stopped.
There are deep-seated reasons for the shrinkage of the proportion of non-standard assets: not only the rigid regulatory restrictions on non-standard assets, but also the market acceptance of long-term limited products suitable for carrying non-standard assets still needs to be improved. A bank financial management and investment manager said that now non-standard investment has entered a new era. It is bidding farewell to the practice of unitary investment in urban investment, focusing on exploring the customer groups such as state-owned enterprises and large private enterprises, and carrying out new varieties such as debt to equity swap, share reform and equity, so as to guide investors who are capable and willing to take risks to other areas of the capital market. (Securities Times)
4. China Citic Bank Corporation Limited(601998) Chengdu Branch linked credit and bank financial management, and Chengdu AAA state-owned enterprise consolidated ABN investment
Recently, China Citic Bank Corporation Limited(601998) Chengdu Branch linked with Xinyin financial management to invest 310 million yuan in Chengdu Xingcheng consolidated ABN for a period of three years, marking the first successful start of Chengdu Branch’s financial investment.
Chengdu Xingcheng is a high-quality state-owned enterprise group in Chengdu, with an external rating of AAA, stable operation, high-quality assets and numerous business segments. It is the main body undertaking the important mission of urban development in Chengdu. In the investment process of consolidated ABN business, the relevant teams of Xinyin financial management comprehensively assisted Chengdu Xingcheng ABN issuance from the aspects of inquiry, bidding and investment, led the price trend, won high praise from customers and further helped the development of real economy.
China Citic Bank Corporation Limited(601998) Chengdu branch broke through the bottleneck of traditional financing and consolidated customer operation through linkage with Xinyin financial management, creating good conditions for further comprehensive financial services. (Financial Investment Report)
5. Cao Jiangtao, general manager of Puyin financial management: rebuild competitive advantage and take the initiative to explore new opportunities in the asset management industry
Shanghai Securities News: what is the positioning and goal of Puyin financial management after its opening?
Cao Jiangtao: Puyin financial management is positioned as a leading asset management institution with specialization, differentiation and internationalization. As a supplier of asset management products under Shanghai Pudong Development Bank Co.Ltd(600000) group, Puyin wealth management, based on the characteristic advantages and market position of wealth management business, gives full play to the advantageous talents of commercial banks such as channels, customers, funds, brands and risk control, aims to rank in the forefront of the market in terms of asset management scale and rich and complete product systems, and takes customers as the center to create an open and A leading asset management brand with integrated product layout, specialized investment and research services and diversified investment strategies. In terms of business direction, Puyin financial management is located in the full range of product types, customer coverage and financial management functions; Strong asset targets, strong management ability and strong investment performance, and strive to establish differentiated competitive advantages and form characteristic investment, characteristic products and characteristic image.
Shanghai Securities News: at present, the mainstream products in the market are cash and “fixed income +”. How is the product system of Puyin financial management built?
Cao Jiangtao: in the three years since the implementation of the new asset management regulations, Shanghai Pudong Development Bank Co.Ltd(600000) has established a new net worth product system with rich forms, diverse functions and extensive investment, and maintained a rapid net worth transformation speed. In terms of product system, Puyin wealth management has established a large and comprehensive product shelf, and successively launched a series of net worth wealth management products such as cash management, bond investment, project enhancement, mixed with rights, mixed with debts, structured linked and foreign currency wealth management, so as to meet customers’ needs for different investment strategies, risk preferences and liquidity, and realize various maturity types Full coverage of investment targets, opening forms, raising types and sales channels. (Shanghai Securities News)
